As businesses grow, so do their workforce needs. Companies are constantly hiring, searching for recruitment services to meet their needs. But what about planning before beginning a hiring process?

This is where having a manpower planning process comes into place.

Manpower planning helps organizations operate in the present, while anticipating future work needs.

In this article, we’ll tackle what manpower planning is, its benefits, and what poor workforce planning looks like. We’ll also highlight the 5 essential steps of creating a manpower planning process.
 

What is manpower planning?

Manpower planning, or workforce planning, is a strategic business practice for maintaining the right staffing levels in an organization. 

It’s about ensuring companies have the right number of people, with the right skills, in the right places, at the right time.

It also ensures there are enough employees to meet operational needs while avoiding overstaffing, which increases costs. 

Manpower planning also aims to avoid understaffing, which reduces productivity, overburdens existing staff, and negatively affects the entire company.

Effective planning optimizes resources, improves efficiency, and supports overall business success.

Manpower planning should align with human resource needs and business goals. This involves anticipating future workforce needs and developing recruitment plans and strategies to meet those needs.
 

Human resource planning vs manpower planning

It’s important to differentiate between two, often mixed-up, terms, HR planning and manpower planning. 

Both are strategic processes in the company and focus on effectively managing the workforce to ensure the organization has the right employees with the necessary skills.

However, manpower planning is specific to determining the immediate and future number of employees needed. On the other hand, human resource planning takes a broader view, aligning workforce management with long-term business strategies like recruitment, training, and performance management.

Human resource planning is the larger umbrella under which forward-thinking companies include manpower or workforce planning. 

Both strategies go hand in hand and contribute to an organization’s overall business success.

What does poor manpower planning look like? 

But what would happen if a company doesn’t conduct manpower planning? In other words, what does poor or no workforce planning look like?

Poor manpower planning can lead to inefficiencies in teams and business operations. It can also result in business disruptions, low productivity, and other recruitment issues. 

Weak workforce planning results in:

• High turnover rates

Without an effective manpower planning strategy in place, companies struggle with unevenly distributed work, causing some employees to take bigger workloads that they should. This leads to elevated stress levels, fatigue, and employee burnout. 

As workers struggle to stay productive, job dissatisfaction increases, making them more likely to leave. This cycle results in higher turnover rates, disrupting overall efficiency.

Further reading: How to Calculate Cost of Employee Turnover [Guide]

• Skill gap

Another issue of poor manpower planning is skill gaps. These can hinder development, progress, innovation, and productivity. 

Without the right expertise, businesses struggle to adapt, leading to inefficiencies and costly reliance on external hiring or temporary solutions.

It can also lead to attempting to speed up recruitment cycles, resulting in bad hires.

• Poor succession planning

Inadequate workforce planning often overlooks succession planning, which is essential for identifying and developing future leaders. 

Without a clear succession plan, organizations risk losing critical knowledge when key or long-term employees leave or retire, leading to leadership gaps and business disruption.

Further reading: 13 Signs You Have a Good Leader in Your Company

Benefits of having a manpower planning process

As mentioned, workforce planning helps achieve balance for organizations.It also helps prevent staffing issues while enhancing employee satisfaction, productivity, and retention.

Additionally, it prepares organizations for future workforce needs and reduces recruitment costs. 

Here are the top 5 benefits of manpower planning:

1. Human resource optimization

Ensures the right number of employees, preventing overstaffing, which increases costs, and understaffing, which lowers team productivity.
 

1. Higher employee satisfaction 

Balanced workloads and clear role allocations create a more positive work environment, boosting morale and satisfaction.

1. Increased employee retention and productivity

Proper workforce planning reduces burnout, enhances efficiency, and increases retention and loyalty. This contributes to improving various employee retention metrics for HR personnel and for the entire company.

1. Meeting future work needs

Successful manpower planning helps organizations anticipate staffing requirements, ensuring they have skilled employees ready for upcoming projects.

1. Fewer recruitment costs

Reduces the need for frequent hiring by improving workforce stability and planning for long-term needs.

What are the 5 steps of the manpower planning process?

The manpower planning process is essential for organizations to ensure they have the right workforce to achieve their goals. 

To conduct a proper manpower planning process, you’ll need to follow these 5 steps:

• Assess your current workforce

The first step in the workforce planning process is to assess your current workforce. Review your employees' skills, qualifications, and experiences to identify any gaps or surpluses. This evaluation will clarify your organization's human resources situation, highlighting strengths and weaknesses.

• Forecast your company’s future needs

After assessing your current workforce, focus on the future. Consider your company's growth objectives and their impact on staffing. 

Anticipate the skills and competencies required by analyzing industry trends, technological advancements, and market shifts.  

For example, if you’re planning to expand your marketing efforts, you may consider having a full or large marketing team. This can include a marketing director, several social media specialists, a copywriter, and media buyer. 

• Conduct a gap analysis

After evaluating your workforce, determine growth objectives and their staffing impact. Assess required skills, industry trends, and market demand to forecast future needs.

• Develop strategies

Create strategies and set up key performance indicators (KPIS) for employee engagement, retention, along with training and development KPIs. 

Offer mentorship, career development and self-development opportunities, and feedback while promoting a positive culture and work-life balance. 

Invest in ongoing training and adjust plans based on employee feedback and performance metrics.

• Monitor, evaluate, and improve

Manpower planning is an ongoing process that requires constant monitoring and adaptation. Regularly assess and adjust strategies to optimize efficiency and align with business goals.
 

Best practices for effective manpower planning

We’ve covered the impact of poor workforce planning, the benefits of manpower planning, and now it’s time to explore best practices. 

As mentioned, effective manpower planning ensures organizations have the right talent to meet their business needs at the right time. 

By reviewing plans, encouraging collaboration, investing in employee development, and enhancing employer branding, companies can boost productivity and retention. 

Here are 5 best practices for effective manpower planning:

• Regularly review and update plans

Continuously assess workforce needs, industry trends, and business goals to ensure that manpower plans remain relevant and aligned with organizational objectives.

Further reading: 6 Employee Engagement Trends to Dominate 2025

• Foster collaboration and communication

Encourage open communication between HR, department heads, and employees to identify staffing needs, address concerns, and improve workforce planning strategies.

• Investing in training and development 

Provide ongoing learning opportunities to enhance employee skills, close skill gaps, and prepare the workforce for future challenges.

Further reading: 6 Expert Tips to Help You Create a Training & Development Budget

• Focusing on employee retention

Implement strategies such as career growth opportunities, competitive compensation strategies, and a positive work environment to reduce turnover and maintain a stable workforce.

• Building a strong employer brand

Develop a reputation as an attractive workplace by promoting company culture, values, and career development opportunities to attract and retain top talent. Make sure you offer a positive candidate experience as part of your hiring process.

Final words

Effective manpower planning is crucial for building a balanced workforce, improving productivity, and fostering business growth. By evaluating workforce needs and forecasting demands, companies can optimize their human resources. 

Tawzef provides manpower outsourcing services, HR consultancy, recruitment services, and outsourcing solutions to help businesses manage skilled teams aligned with their long-term goals.

Get in touch to learn more about how we can help you create a manpower planning strategy and process for your company.